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Bad Credit Loans: Restaurant Loans 101

Over the past 5 years, the amount of franchise establishments in business have been steadily increasing with the demand for funding growing right along with it. Check out the chart from Statista! I’m telling you the truth! Franchises are seeing steady growth from year to year and the trend has been increasing upward without any evidence of slowing down. Small business owners nationwide are securing financing products from AMP Advance because we cater to individuals looking for bad credit loans ranging from restaurant loans, to equipment loans, and even unsecured business loans. If you are in the market for bad credit loans and find yourself in need of restaurant loans keep reading to learn more about what you need to know to make a confident decision.

To view all of AMP Advance’s Small Business Financing Options click HERE

Restaurant loans – Good and Bad Credit Loans

If you are one of many Americans looking for financing for your restaurant, know you are definitely not on your own. If you understand your needs, set realistic goals, and understand that without working capital business will not improve then you are in the right place. We understand that you do not have multiples of hundreds of thousands of dollars sitting in your bank account, funds to continue properly operating will be necessary at one point or another. If you are a small business owner working in the restaurant industry there are a few custom options available to you. Restaurant financing and restaurant loans are two financing products that are easily and readily available to you. Our goal is for you to have $100,000+ weekends, isn’t that your goal?

Small business owners who feel that they can start a new brand and make it on their own, beware. It is a lot easier said than done and if you are new to opening restaurants then franchise options, like Mellow Mushroom, are your best option. Franchising is a great option because the algorithm for success is quite literally spelled out for you. Franchising allows individuals to own their own small business without rewriting the wheel. Franchise owners receive a national marketing strategy, instructions for operations, as well as tried and tested scheduling and routines which have been deemed necessary for the overall success of the business. If the franchise rules are followed, and all aspects of quality management are upheld then it is very easy to reach complete success.On the other hand, some individuals have goals and dreams about creating a restaurant business from scratch. The requirements for properly and effectively running a restaurant are quite intensive. From keeping inventory every week to properly running marketing campaigns, every restaurant small business owner has to cover the basics and beyond in order to continue success. Restaurant management savvy individuals are familiar with the fact that a large majority of new restaurants close within one year but not many individuals know why. 

 

In order to stay afloat when opening a business all bases need to be met and up kept in order to be successful. At no time, whatsoever, should a new restaurant open it’s doors without at least 6 months of marketing under its belt. Let’s be real, it does not matter how good or revolutionary your food is. It does not matter how beautiful your brand new restaurant is. Nothing matters if the community and the masses do not know or have not heard about the new brand. New restaurant owners trying to make 

a name for themselves must understand that the key to success in the restaurant world is consistent traffic. At the end of the day, if you have the capital accessible, we always strongly recommend franchising. We always recommend franchising because this business venture’s risk involved is substantially less than if an individual decided to create their own brand. Instructions as well as an aged national marketing strategy are no longer of worry to the business owner relieving some of the day to day stresses the job comes with.

Restaurants eat cash. Operating a restaurant, franchise or not, requires a substantial amount of cash on hand in order to make sales day in and day out. As a small business owner running a restaurant the very last thing you want to have to worry about is making payroll or being able to properly fill your inventory. In these instances, small business owners turn to restaurant financing to solve cash gap issues.

There are 4 different restaurant financing options ranging from prime products for businesses with good credit to individuals seeking bad credit loans.

 

Equipment Loans

Equipment financing is when a small business owner receives a loan for the purchase of equipment necessary for day to day operations of their business. These loans are provided to prospective clients who have sufficient personal and business credit profiles, and sufficient use for the equipment. If you are going to utilize equipment financing make sure that the ROI pays off the initial investment in a relatively quick time period so that you may experience long term profits and decrease your overall holdback percentage. 

Working Capital Loans

When discussing working capital loans two products fit the role, unsecured business loans and merchant cash advances. A merchant cash advance, or in short MCA, is not classified as a loan. A merchant cash advance is an advance of cash in return for the purchase of future receivables. The advance amount and details are subject to the ebb and flow of revenues and its not a loan due to the fact that merchant cash advances do not have a fixed term, payment amounts are based on the overall holdback percentage of any given business. Merchant cash advances are targeted for those small business owners who do not qualify for traditional loans and are looking for credit rehabilitation to get back into the top tier of loan programs. An unsecured business loan is a financing option in which zero collateral is requested. This form of business loan is qualified solely dependant on past credit history of the borrower. In today’s day and age, finding a true unsecured business loan is few and far between, especially for larger funding amounts. Banks are reducing the amount of loans they are lending to small businesses more than ever. Most business owners’ first choice when thinking about loans are institutionalized, traditional banking sources. While these sources may offer an unsecured business loan or unsecured business line of credit to top qualifying borrowers, most of these traditional bank sources typically require collateral or some other form of guarantee.

Inventory Financing

One of the largest challenges and stresses for restaurant owners is covering food costs along with managing food costs on a consistent basis. Like previously stated, restaurants eat cash. Restaurant owners must have capital available in order to cover one of the largest restaurant expenses, inventory. Restaurant financing and restaurant loans come in all different  forms, including but not limited to, short-term loans, medium-termed loans, or inventory specific lines of credit. All of these forms of financing to cover inventory allow small business owners make smart, confident decisions when it comes to managing inventory and making it through every day of the week. With each form of inventory financing solution there are no catches. Purchase your inventory, make your payments, keep the ROI.

Lines of Credit

A business line of credit are a financial product that is offered to small business owners nationwide because of the peace of mind that it brings. A product used by the financially responsible, small business lines of credit are certainly helpful when unexpected expenses arise. Businesses qualifying  with AMP Advance for a business line of credit are able to get through all sales valleys due to the convenience of the credit line they hold in their back pockets. The revolving credit program does not have a fixed payment structure and the interest charged is dependant on the state of the market.

The Lowdown

As you can see, restaurant owners finding themselves crunched for cash have many different financing options available to them.

Due to restaurant’s rather high ROI and large profit margins, receiving financing makes great business sense. New small business owners need to make sure all of their bases are covered before even entertaining the idea of opening their doors. If you have been fiscally responsible and are interested in opening a restaurant we definitely suggest checking franchising opportunities to reduce the risk of potentially not succeeding. Not only are you guaranteed exposure at the national level, but you are also provided with, figuratively and literally, the key to success. From full instructions spelling out operations, to suppliers already set up, franchising provides security in an extremely unsecure industry.

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivable financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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Simple Ways to Cut Your Company Expenses

Plenty of companies, especially new businesses, struggle to bring in enough revenues to offset their expenses. Owners and other decision-makers often incorrectly believe that it takes drastic action to cut expenses, such as letting go of employees, ending benefits, or wait until “someday” to purchase products or services that are necessary to improve production processes, customer interactions or marketing efforts. You don’t need to give up on moving forward with your business to reduce operating expenses. You merely need to come up with more creative solutions.

Expenses: Recycle Everything Possible

Some business owners surprisingly never recycle as much as possible. What they fail to understand is the benefits associated with recycling. Recycling reduces waste disposal and other expenses. For example, if your company has a cafeteria, you can reduce the costs associated with buying fertilizer for your landscaped gardens by turning the food waste into nutrient-rich compost. Disposable molded cup holders are typically made of biodegradable pulp that you can put in compost bins. You can even enjoy benefits from recycling office furniture and equipment. If you donate the items to charities, you can write off the gifts as charitable donations on your tax returns. Additionally, certain manufacturers and retailers give companies who recycle their electronics discount percentages off the cost of future products and services.

A company that recycles is often labeled as a “green” business by the public, even if that company doesn’t reduce its carbon footprint or use green building materials or energy solutions. Since customers are more likely to buy products and services from companies that they perceive as environmentally-friendly, you actually increase revenues while cutting expenses when you recycle.

Trade Instead of Pay

If you’re having trouble coming up with the money that you need to invest in your business because of current high expenses, talk to your vendors and other businesses in your industry about forming reciprocal partial or full trade partnerships that benefit everyone. For example, you might ask your equipment supplier if they would be willing to reduce repair and replacement costs by a percentage if you did the same for them in turn with your products and services. Another option: You agree to provide written and video testimonials about how much you use and like the products or services of a partner business as part of the exchange or hand out the other company’s business cards and promotional items to your customers to help the other business gain new customer leads.

Purchase Used Office Items

A wide range of offline and online businesses sell used office furniture, equipment, and other supplies that are in good shape. You could save tens of thousands of dollars in replacement office item expenses by shopping for used items at flea markets, thrift shops, used office supply stores and office rental companies. You should also check newspapers, online classified sites, and social media yard sale groups. Other business owners who have recently upgraded their company office or industry-related items or have decided to shut down their businesses entirely utilize the internet to find buyers. Many places also advertise offline local “going out of business” sales via these methods.

Switch to VoIP

Stop wasting money on landline-based telephone systems, infrastructure, and services. Switching to hosted business VoIP services is one of the best ways to save money on communications. Voice over Internet Protocol makes it possible for you to make and receive phone calls and enjoy a variety of call features over the internet at typically a lower cost than traditional options. Since internet infrastructure is often newer than landline phone infrastructure, you can expect fewer communication disruptions and expensive tech support calls that occur when landlines go down. You can typically keep your existing phone numbers, including toll-free ones.

Extra features, such as cloud-based voicemail boxes, voice-to-text transcription and message forwarding and remote customer service and after hour answering services, are included or offered at low prices in VoIP bundled plans. With low-cost special adapters, you can even save money on equipment costs by continuing to use your existing high-end business phones or mobile phones.

AMP Advance offers fast, affordable, and easy small business loans to get you the cash that you need to boost your business. Apply now!

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An Unsecured Business Loan For All Businesses

Every small business owner gets into a situation where borrowing money is the only way to keep pushing forward. The choices to borrow now in the 21st century are endless, from borrowing from family to securing a business credit card, or even more traditional means like an SBA loan all come into question. When traditional lending means is inquired upon two specific products come into question: a secured business loan and an unsecured business loan. These 2 types of loans each have their own requirements, fit specific businesses, and bring along their own separate advantages and disadvantages.

To view all of AMP Advance’s Small Business Financing Options click HERE

 

Unsecured Business Loan

When looking at different financing options it is of utmost importance to know the difference between all of your available financing products. Look closely at all of the options and pick the one that fits your needs. Below we explain everything you need to know about an unsecured business loan and a secured business loan. As mentioned previous times before, make sure you do your own research before allowing someone else being in your ear providing you with their opinions.

An unsecured business loan is a financing option in which zero collateral is requested. This form of business loan is qualified solely dependant on past credit history of the borrower. In today’s day and age, finding a true unsecured business loan is few and far between, especially for larger funding amounts. Banks are reducing the amount of loans they are lending to small businesses more than ever. Most business owners’ first choice when thinking about loans are institutionalized, traditional banking sources. While these sources may offer an unsecured business loan or unsecured business line of credit to top qualifying borrowers, most of these traditional bank sources typically require collateral or some other form of guarantee.

The Difference: Specific Collateral vs A Lien on Business Assets

Traditional lending sources generally use collateral to secure themselves with lending funds to any business. Traditional lenders will look at assets that you own either real estate, business equipment, or other tangible business assets that carry strong value. The lender will proceed to assess the property or equipment in order to determine the loan-to-value ratio of the asset in order to finalize pricing. Typically, we are seeing lenders borrow against seventy percent of assessed value on real estate properties and sixty to eighty percent of ready-to-go inventory. Each different lender that you speak to has their own algorithm determining the loan-to-value ratio. Ask whichever potential lender how the value is set so that you may provide yourself with the best chance of securing your capital.

Alternative lenders, like many online lenders you see today, do not require collateral, in most cases, but rather execute a business lien on business assets along with a personal guarantee in order to secure the loan that you are seeking. This allows small business owners to qualify for more types of financing products because without a typical form of collateral, the lender is being secured through the lien. Loans that do not require collateral, but require a lien tend to cost slightly largely due to the higher assessed risk involved. With this in mind, here are some benefits to unsecured small business loans that you should keep in consideration:

  • Online lenders are changing the alternative lending space and fixing all of the problems most small businesses face when it comes to lending. The speed to funding now is next to none when applying for a traditional form of loan can take 30 to 60 days. With online alternative lenders, quick application processes, and even quicker approval times have become the new standard. Once small business owners are approved for their unsecured small business loan funds are deposited into the business banking account within 48 hours. Nowhere else will you find quick, efficient capital online!
  • Total loan amount is not determined by the value of your collateral! Different to loans from bank sources, unsecured business loans are qualified dependant upon the health of your business credit profile, cashflow observed when underwritten, as well as time of length in business and other determining factors. In many cases, small business owners qualify for a larger amount of capital than they normally would with a collateralized option.

Make sure you ask your lending source if they report your payments to the crediting bureaus. This can work in your favor over the term length of the loan, if you make payments on time these payments will help bolster your credit score. Along with this, if payments are reported, this also shows that you have an increased credit amount and all lenders feel secure if proper credit history is observed. All and all, unsecured lending options are not required to have collateral securing them and this alone has many people thinking of new age ways of lending that is emerging for small business owners nationwide.

Unsecured Business Loan or Secured Business Loan?

Have you secured yourself a business line of credit, or a business credit card? If you have already secured or tried to secure one of these options, the next option may be securing an unsecured business loan. Financing option details all vary from lender to lender but you can expect to see different debt structures, different payback schedules, and different forms of qualifying. Before getting too far ahead, if you are a small business owner you need to initially determine which is right for you, an unsecured business loan or a secured business loan.

Secured Business Loan

Secured business loans, or asset backed loans, are collateralized being secured by tangible, business assets. These assets range and vary from commercial properties, to buildings, to equipment. If default occurs (default- failing to pay back on financing) the small business owner loses the asset that was put up for the funds and the lender becomes the legal owner of the asset. Typical forms of collateral seen, but not limited to, future receivables, inventory, business equipment, personal equipment, business buildings and sometimes liens on your business.

Business owners choose this option to limit personal risk involved with the investment, business owners may seek lower interest rates or even the owner has not proven sufficient credit history with making repayments over longer term lengths. The pros and cons of secured business loans are bountiful. A large pro for secured business loans are banks are more lenient and gracious with the terms and rates because their investment is secured, or backed. Business owners requiring larger dollar amounts, usually because of buying real estate, have sometimes over 30 years to repay these loans. Since the assessed risk with secured loans are lower, there is more room for error (aka missed payments etc.). A large con presented with secured business loans is that they are limited to the value of their assessed asset put up for collateral. With secured business loans, the business owner is putting a possession up for legal repercussion and if you do not repay the loan you will lose the asset put up for collateral.

Unsecured Business Loan

In many instances small business owners do not feel comfortable with putting up business assets as collateral in order to receive a loan. Businesses in this case would have to rely on a strong aggregate credit score in order to secure the funds that they are seeking. In this instance an unsecured business loan is the option to proceed with. Unsecured business loans are not backed by collateral but do require other types of guarantee. This type of financing, due to being higher risk to the lender, comes at a slightly larger cost. In this situation, if default occurs, there are no assets to take in turn for payment. Unsecured business loans tend to have higher interest rates and the qualification process is generally less stringent. Banks can even require a different form of security instead of collateral – like to purchase your future sales receivables.

Unlike secured business loans, unsecured business loan does not have the restrictions of only receiving funds of equivalent value of your collateralized asset. Not only does this allow you to receive the most funds that your business deserves but this also cuts the time to funding in half. Upon bankruptcy on a secured business loan, you are not left helpless, forgiveness sometimes occurs. Cons of unsecured business loans include, but are not limited to, higher interest rates, shorter term lengths, increased qualification standards and having a heavy credit related aspect. The source lending the funds will require lengthy time in business, strong cash flow, and a sufficient aggregate credit profile. In the case of a default on an unsecured business loan, damaged credit plus a myriad of other negative proceedings will occur.

Secured Business Loan Incentives

A large incentive with secured business loans is that the interest paid on the principle amount can be written-off as tax deductible. With an unsecured business loan a small business owner cannot write off the interest paid on the principle lent amount for tax saving reasons.

When you have a secured loan, it is possible to write-off interest that is associated with the loan. This would be true if the loan is secured by your primary home. But you are then putting your home at risk if you can’t make payments on the loan. With an unsecured business loan, you cannot write off the interest because it is not collateralized. This prevents any of your assets from being at risk.

Continue to learn all that you can about your small business and finance needs. Figure out the proper source, your proper rate, term lengths and product types available to you so that you find exactly what fits your needs. Before applying we suggest doing everything you can to apply with a good credit score, doing your research, and knowing what is available on the market. This will allow you to secure the best financing option for your business.

 

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivable financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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Term Loan: All You Need to Know

As per Investopedia, “A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate.” Most term loan providers will extend loans with repayment terms from one year to ten years. Highest qualifying clients, through their own research, can also find hidden gem providers who can extend loans up to thirty years. Term loans tend to involve unfixed interest rates in which additional balance is added in order to satisfy repayment. 

To view all of AMP Advance’s Small Business Financing Options click HERE

 

Short Term Loan 

For many small business owners, a short term loan makes the most sense. Short term loans are relatively easy to secure, and you can receive your funds sometimes even within 24 hours. In today’s day and age, the plethora of alternative lending can be overwhelming to some business owners. Due to the abundance of alternative lending options available, it is ever so easy to get funds for your business without having to deal with the restrictive nature and requirements of traditional banking institutions. Small business owners are now easily securing the funds for their business without even having to step into a bank. There are many instances in which small to medium sized small businesses do not need long term loans or financing.  

On the alternative lending market, financing options like working capital loans, merchant cash advances, or equipment financing and leasing offer everything a small business owner may need. These options provide flexibility while offering very quick turnaround times so that business owners do not skip a beat in day to day business. This form of unsecured financing is expected to be repaid within a shorter length of time, generally six to eighteen months. A short-term loan has a quick approval process, do not require collateral, and require minimal financial documentation. Consideration of short term financing can range from needing fast cash for a repair to any other business venture in which small business owners cannot wait thirty days for their funds. Not only are small business loans good for emergencies but they are quick fixes to unsteady cash flow. Overall, short term loans are one of the easiest options for small businesses to obtain liquidity and break through any financial challenges faced. Long term loans, can be thought of as longer termed debt taken on.  

Businesses Benefiting Greatest from Short Term Loans

Small Business Owners Who Cannot Wait

As mentioned in a previous post, there are many instances where surprises spring up in day to day business. Maybe one of your suppliers is offering a discount this month, or you see a special foreclosure on Short or Long Term Loans, which are betterthe market and it is your dream space. Whatever the case may be, you need to take advantage of the opportunities in order to increase sales or take business to the next level. All is lined up but the only thing missing is the actual cash in the account. In this exact instance, a short term loan is the most obvious choice. Within 24 hours of applying, funds can be transferred which allows you to never leave money on the table. You are in the business to make money, not lose money. It always must be kept into consideration that with the swift ease of obtaining the needed capital, the cost for the funds is generally higher compared to longer term options. One question business owners must ask themselves when weighing out the pros and cons of term loans is will the return on the investment be worth it? Short term loan options are generally higher in overall cost due to being uncollateralized, completely unrestricted, and requiring much less financial documentation (And did I mention funded in 24 hours?). If the opportunity to make a significant return on the loan is present then the decision is a no-brainer.

Small Business Owners Seeking to Balance Cash Flow

In a recent study conducted by AMP Advance, seventy five percent of our customers stated that the largest Small Business Owners Seeking to Balance Cash Flowcause of their stress in day to day operations is cash flow. Many small business owners are going through the exact same things each year but in different industries. Steady cash flow is a constant struggle and it is what everyone is trying to conquer! Finding yourself desiring steady cash flow? That is easy, begin by doing research and find yourself a short term loan provider and secure a short term loan of up to $500,000 to even out the peaks and valleys in your revenue. Stop staying awake at night wondering how you’re going to make it through the week. Do not be like the seventy five percent, balance your cash flow with a short term loan today.

Business Owners Sensitive to Long Term Debt

Client’s who have this mindset come across my desk daily. Business Owners Sensitive to Long Term DebtI cannot knock it, it’s completely understandable. Nobody likes long term contracts and truth be told not many people know how it feels making a commitment for up to 30 years at one time. Short term financing provides a solution to those small business owners facing this dilemma. Payments observed on the loan generally tend to be a higher dollar amount due to having to fit the entire loan in a substantially shorter amount of time. Short term loan providers are flexible and some even offer early payoff discounts if you receive your return on your investment sooner than you had previously thought.

Business Owners Using Short Term Loans for Credit Repair

The quickness and ease of short term loan options can help provide businesses with a quick credit rehabilitation. Ask your loan provider if the installment payments are reported to the major credit Business Owners Using Short Term Loans for Credit Repairagencies. If each installment payment reports to the credit agencies, then based on your payment structure decided you are in for a great boost in credit score. Keep this in mind when determining your payment schedule. Most providers provide daily payments which seem like a complete burden. In reality, the absolute opposite. Not only do terms associated with daily payments cost the least in the long run, but they provide you with opportunities daily to increase your credit score. Using financing for your business doesn’t sound all that bad now does it? Who would’ve thought that just by simply making the scheduled installment payments, a noticeable credit improvement would occur!

Long Term Loan

Long- term loans not only have long term repayment structures but they also have just as long application processes. A long term loan generally includes funded amounts up to over five million dollars and repayment terms up to thirty years. This type of financing, with long term installment payments, is vital to certain industries and several different types of businesses. Compared to short term loans, in which up- front interest is higher, long term loans generally have next to zero upfront cost. With zero or close to zero upfront cost, long term loans are generally more expensive due to the fact that you accrue interest on them over time. If your set installment loan is for 30 years then you have to expect 30 years of accrued interest to the overall cost. Along with the increased overall cost, long term loans are more difficult to secure and the application process generally takes 30 business days. Long term loans are required to adhere to strict standards and qualification practices as well as a meticulous due diligence process. An alternative lender, like AMP Advance, provides bad credit loans as well as long term loans to assist small business owners who do not have adequate credit histories and whom traditional institutionalized sources would not provide the funds to.

Long Term Loan

Which Term Loan Option is The Best?

At the end of the day, whatever term loan option decided is best determined on your short and longer term needs. Weigh out all your options, and create short and long term goals. Do you need short term financing or can it wait? Do you want to make the commitment for twenty or more years? For some, long term financing options are vital to the long term integrity of  the business and security of your tangible assets. To most, short term loan options are their best option. Work with your lender, they can truly customize any type of loan, long or short, to your exact company’s needs setting you up for prosperous growth and success.

 

Which Term Loan Option is The Best?

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivable financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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Loan 101: What to Know Before Applying

It’s time to buy a home, and it’s an exciting moment. First, however, you need to secure a loan. If you’re unfamiliar with the mortgages, you are more apt to make costly mistakes. Getting to know what you need to do, when you need to do it, and what works best for some people is how you make sure you get the most loan for your money. You don’t want to pay more than you need to pay for a house. Here are some things to keep in mind as you apply for your first home loan.

To view all of AMP Advance’s Small Business Financing Options click HERE

Shop Around

You are not required to take the first loan offer you’re given. Shop around to see which banks have the best rates and find the one that works for you. It also depends on the type of loan you’re shopping for in terms of affordability. For example, you might find a conventional mortgage has a lower rate, but you don’t have a down payment and want to try to apply for a VA loan or even VA refinancing rates if you’re simply refinancing. There are so many options you cannot afford to not shop around. See if you can get a financial advisor to help guide you in the right direction.

 

Get A Loan Pre Approval

You must have preapproval before you shop for a home. Many sellers overlook offers that come in from a buyer without a preapproval and will even accept a lower offer if the lower offer came from someone who was preapproved. Sellers don’t want to take the chance that you cannot afford what you think you can and lose time with their house on the market.

 

Only Spend What You Can Afford

You should know that the bank might tell you can afford to spend more on a house than you really can. If you do the math and know what you can afford to spend monthly and still maintain a comfortable lifestyle, you’re not going to be able to afford more than that just because the bank said you can. It’s called being house-poor, and it’s not what anyone wants to be. Be sure you’re within your monthly budget means and still have some extra spending power so you aren’t stuck.

 

Check Closing Costs

This is not a definitive deal breaker because you can ask the seller to foot part of the bill for closing costs, but you still need to look at them. Some banks want a lot more than others, and this might be a factor in choosing your loan. Don’t secure a loan without knowing what you need to pay out of pocket.

 

Finding a loan is easy, but finding the right loan is not as easy. You must check your credit report for mistakes, dispute anything you find wrong, wait for your score to fix itself, and then apply for a new loan. You want the best rates, and the only way to get those is with a great credit score. That’s when you start shopping, and that’s when you utilize these tips.

 

 

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivables financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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Insider’s Guide to Equipment Financing and Leasing

An insider’s guide to equipment financing and leasing. Equipment financing and leasing is the process of acquiring business equipment by small business owners using funds that have been provided by a financial institution. But wait, what qualifies as business equipment? Business equipment, for the sake of equipment financing is any liquid and palpable asset, not including property (or building on property), utilized for the successful day to day operations of a small business.  

To view all of AMP Advance’s Small Business Financing Options click HERE

 

 

What types of equipment qualify for financing? 

Almost any type of equipment utilized for day to day business and operations can qualify for financing. Equipment varies from furniture necessary to fill an office to a walk-in freezer for kegs at a bar. Doctors finance many types of equipment and most of the x-ray machines, MRI machines, and CT scanners found in imaging centers have all been financed. Most small business owners cannot afford the necessary equipment to complete the job. Leasing opportunities are also available, but every small business owner’s dream is to own all their own necessary equipment.  

 

 

 

 

Why should I utilize equipment financing and leasing?

Many small business owners choose financing over buying their heavy equipment outright. Choosing equipment financing provides much more payment flexibility in the long run when purchasing equipment that can cost from $10,000 to $1,000,000 (oil rigs etc.). It is assumed that the asset being purchased will have a significant life of use, in which it provides a large yield in return, paying itself off in the process. 

Another reason for turning to equipment financing and leasing may be due to unfortunate circumstance. If a restaurant’s walk-in freezer or pizza ovens break, no matter what, these pieces of equipment are vital for day to day operations. Equipment financing can always be relied on and is recommended if you are in a qualifying industry.  

Equipment loans, just split into two.

There are two different financing opportunities correlated with equipment loans. 

As previously recommended, please do your own research before initiating any type of financial decision and gather all details on the market so that you can make responsible financial decisions. Here are the major details we feel you should know about the two different sides to equipment loans to provide a little help to you before you make this huge business decision. As per the U.S. Economic Outlook 2018 Equipment Leasing & Finance U.S. Economic Outlook, “Equipment and software investment growth is expected to strengthen in 2018 after expanding at a solid pace in 2017. A strong labor market, elevated business confidence levels, and healthy credit conditions should build on the economic momentum experienced in 2017, while tax cuts and a firming oil sector will likely offer additional boosts to growth. However, a rising interest rate environment could weaken lending activity as the year progresses. Overall, investment in most equipment verticals should remain solid in 2018.”

Equipment Financing

Equipment financing is when a small business owner receives a loan for the purchase of equipment necessary for day to day operations of their business. These loans are provided to prospective clients who have sufficient personal and business credit profiles, and sufficient use for the equipment. If you are going to utilize equipment financing make sure that the ROI pays off the initial investment in a relatively quick time period so that you may experience long term profits and decrease your overall holdback percentage.

holdback percentage: debt to income ratio

If you are in a situation where you already own other pieces of equipment, and the assessed value is sufficient, some lenders allow the use of collateral to finance the loan. If the value of the equipment you are purchasing is on the lower scale, and collateralization is not necessary, equipment loans have been observed to be offered in lower amounts than offered by most traditional banking institutions. This is what makes equipment financing an extremely vital tool for small business success.

Term lengths for equipment loans differ amongst the major providers of equipment financing and leasing. Equipment loan term structures generally stretch up to 7 years with the cost of the loan varying dependant on a multitude of different factors. Some factors include, but are not limited to, personal and business credit profiles, age of credit history, industry, use of funds, time in business, and state of incorporation.

We suggest, to all clients, to seek options from their local credit unions first. Become a member, apply and check out the amazing equipment loans they offer. Second suggestion, major banking institutions. All major bank institutions like Wells Fargo, Bank of America, and Chase all offer equipment financing and leasing options to qualifying small business owners. These sources provide the most generous terms but are much stricter in their qualifying procedures.

An online lending source, like AMP Advance, offers equipment financing and leasing opportunities to facilitate small business owners in increasing their monthly revenues. Our clients purchase the equipment that they feel is most necessary to increase sales while also saving themselves important capital through tax deductible write offs made for all payments on the loan. Unlike traditional financial institutions, AMP Advance provides responses within minutes and can have the funds in your account in as soon as 24 hours. AMP works as fast as you let them. All small business owners know that time is money and we’re not in the business to waste yours or ours- money that is.

Traditional down payment amounts ranging up to as high as 20% of the loan upfront are requested in order to reduce overall risk of the financial move. Compared to an SBA 504 loan which some small businesses use for similar reasons, only 10 percent is required as a down payment but the term and overall rate are much more in your favor but qualifying is more difficult.

Equipment Leasing

An equipment lease, in layman’s terms, is a rental agreement in which the owner of the equipment allows the use and possession of the equipment in agreement that the small business owner pays back a set amount, with an agreed upon payment structure for the duration of needed use to the business. For the sake of leasing, the lessor is the owner and the lessee is the small business owner using the equipment. The lessor is the individual who has paid for the asset and is willing to lend it out for a set fee which sometimes can be lower than any loan. Most lenders on the market offer equipment leases with fixed interest rates and terms, and these details are directly correlated with your business and personal credit profiles. Once again, make sure to conduct your own research because many companies offer the outright purchase at the end of the lease at a very fair price.  

 

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivable financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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Business Line of Credit – A Common Necessity

A business line of credit are a financial product that is offered to small business owners nationwide because of the peace of mind that it brings. Pay only as used, up to $250,000, weekly payment frequency dependant on used credit? I mean come on what else can you ask for? You will be convinced sooner rather than later.

To view all of AMP Advance’s Small Business Financing Options click HERE

 

Why apply for a business line of credit?

The absolute plethora of uses of a small business line of credit is what puts small business owner in the driver’s seat. No more are the days of peaks and valleys in sales weeks. Small business owners in the 21st century are currently utilizing credit lines for their benefit. A product used by the financially responsible, small business lines of credit are certainly helpful when unexpected expenses arise. At the end of the day, isn’t it nice to have cash on hand exactly when you need it? Unlike anything else in your life, a business line of credit will always be there when it is needed. The best part, if you do not need it you do not have anything to pay.

Businesses qualifying  with AMP Advance for a business line of credit are able to get through all sales valleys due to the convenience of the credit line they hold in their back pockets. How many times do unexpected business opportunities present themselves? All the time! Cash is key in being able to never let those profit making opportunities pass you by. Do your providers offer monthly deals that vary? Of course they do! Use a business line of credit to confidently make purchases that save you the most in the long run. Seasonal? A business line of credit will benefit you the most. Get through the winter until projects increase and continue doing what you do best, that is running your business. Now, due to the nature of business lines of credit, it is not recommended to use the entire balance at once to try to solve a larger debt problem. Business lines of credit have compounded interest so the longer the balance is held, the higher the overall cost for the credit becomes.

Now, please do not confuse our line of credit with our business credit card. The business  line of credit is target towards better qualifying clients where qualification for the business credit card is not as tenuous. Even against all recommendations, a majority of small business owners obtain credit cards and cash advances because of the quick and easy application process. As a small business owner you are responsible for being meticulous in everything you do. Why not be meticulous with securing the most cost effective options? Do some research, find all of  your options and pick the option that truly fits your company not only today, but still fits in 60 or 90 days. Stay focused and no matter what, pay attention to fees. If used responsibly, business credit cards can be very cost effective and most of all, convenient when something needs to be purchased right way (or used for bills of course). 9 out of 10 times, based off of our current client’s, the terms of repayment favor our business line of credit dependant on one’s business and personal credit scores being adequate. The revolving credit program does not have a fixed payment structure and the interest charged is dependant on the state of the market. A good start to being that ideal model of a small business owner is to do some research at your local bank branches because these financial institutions provide lines of credit and business loans at subprime rates. Keep doing your research, we know you’ll stop when you find where it says we provide discounts for early repayments. Unlike the institutionalized banking institutions, we have the ability to reward our clients for lowering their balances early and constantly. Our approach is to provide rewards while also providing peace of mind to small business owners. This algorithm has proved itself tenfold and it is clear how business improves and stays steady when our clients are truly happy. Never fear, AMP is here to provide the peace of mind that all small business owners seek.

I Secured A Line of Credit, Now What?

Now you have the freedom to do what needs to be done to handle operational expenses without a worry. Are you a restaurant owner or own a retail store? How often do sales vary with unexpected factors? Inclement weather alone can reduce sales by over 75% and normal $100,000 weekends can become $10,000. With that line of credit that you just secured you know you will literally make it through the rain. Inventory for the next week will be covered and you are able to fight another day. It is not suggested to spend your whole balance at once because every small business owner must become acclimated with their new holdback percentage (holdback percentage- debt to income ratio). If you are a new small business owner and have new credit then this time is crucial to make the right decisions and be responsible to collect as much positive data on your credit report right from the start.

Every entrepreneur knows the saying cash is king. Cash is what allows you to open your doors, pay for the bills to operate, and even to provide improvements to drive an increase in sales. No small business owner should be stacking their pennies or staring at their ceiling all night thinking what have they done. There are answers and ways to initiate improvement and the only way to improve is to act. Research, find the most cost effective options that fit the schedule of your income, and keep strict use in mind. With the line of credit, focusing on growth is easy because you’re taking the focus off of trying to figure out where to get the funds. All businesses, in order to survive, must budget for payroll, marketing expenses, improvements and repairs. As long as you keep your mind open and inspect all options, positive opportunities will present themselves. A business line of credit provides the financial peace of mind so that you can solely focus on improving your business.

 

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivable financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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Peace of Mind Today, A Business Line of Credit

Business lines of credit are excellent with assisting with the recurrent nature of most businesses. Millions of small business owners understand that they can not always make ends meet on their own. In fact, the strongest businessmen/women understand that it takes money to make money and that receiving funds from outside sources just makes good business sense. One commonly used option to obtain capital is by securing a business line of credit. A business line of credit can help you get through the hard times and provide the peace of mind most small business owners are seeking.

To view all of AMP Advance’s Small Business Financing Options click HERE

What is a Business Line of Credit?

A business line of credit is defined as an agreement providing credit up to a certain amount. The client can withdraw funds at any time, as long as he or she does not exceed the maximum allotted credit amount found in their agreement.

The advantage of a AMP Advance business line of credit over a regular business loan is that the interest is only based on what you use, and the business owner can withdraw funds at their discretion. Meaning, you do not have to take the entire amount that you are approved for all at once. You take what you need and solely payback on what you take, unlike other products in which you have to pay daily on funds that you haven’t used. This product revolves allowing you to withdraw over and over as long as you are paying back sufficiently.

A business line of credit is a type of financing product that is granted to help businesses finance many types of business expenses. In most cases, a line of credit is utilized to assist a company with short-term operating needs. This includes, and is not limit to, basic day-to-day operational expenses, payroll, material costs, increasing working capital or simply refilling your inventory. Most businesses — at one time or another — have cash flow problems. Cash flow issues can stem from a variety of reasons ranging from being on a set net 60 or 90, seasonal conditions affecting sales, or even natural disasters that may leave you without work. The fact is, even though sales may be the best they have ever been, there is never a guarantee that they are going to remain stable forever. It’s possible that someday you’ll be stuck trying to pay for operations or even business related bills— without enough capital in your bank account to cover the expense.

As a small business owner you already know that in order for operations to run smoothly without interruptions, capital must be on hand. Even though we always recommend to properly save so that funds are on hand during a rainy day, the next best suggestion is to receive a business line of credit. Applying while you are flushed with cash puts you in the best position with lenders—after all, we all know that banks are more eager to loan you money when you don’t need it, rather than when you desperately do. In situations like these, all businesses  can benefit from a business line of credit. Responsible business owners generally are ready for rainy days occur, it is not too late to guarantee a prosperous future for your company.

What Should Business Lines of Credit Be Used For? 

A business line of credit is a product used for small business owner’s short-term working capital needs, such as payroll, material purchases, or refilling inventory. Lines of credit come in handy to even out the ups and downs that you may experience in sales from day to day. Terms lengths are set annually with an interest rate based on the prime rate plus one to three percent. Payments are comprised of a percentage going to repaying the principal amount as well as a percentage for the interest on this amount. But the largest benefit is small business owners only pay on the amount you borrowed. 

It is suggested to make sure to reach a zero balance 1-3 times yearly to show proper financial responsibility. Don’t withdraw more than you can repay in 1 week. Using a business line of credit correctly and paying back what you’ve used weekly you are truly utilizing the line correctly and securing yourself the cheapest cost for capital on the market. Business lines of credit can range from $5,000 to as high as $250,000 (at AMP Advance), depending on your what your business qualifies for. 

Let’s just say you decided to break off on your own and start a new business, this new business to succeed needs marketing in order to be seen and solidify yourself as a brand. Because of the marketing expense you know are unable to make payroll and we all know that making payroll is vital to stay afloat and of course, it provides security for your employees to be able to provide financial security to their families.

Life is unpredictable, we know that. The peace of mind that business lines of credit provide helps weather the storm and guarantee that all expenses will be paid. While every business should have a cash cushion available for times like these, sometimes the crisis lasts longer than the money does. Times like these are exactly when you should draw on your business line of credit. 

If a small business’ sales are contingent upon sales of inventory then it is vital that all current inventory needs are met and that all future inventory needs are accounted for. As the owner of a business, your success is measured by consistently being able to give your customers what they want exactly when they want it. Meeting that demand keeps you in business; going above and beyond helps you grow. 

Owners of restaurants as well as small business owners whom have retail companies tend to benefit the greatest from business lines of credit. These companies are inventory based and while the individual responsible may be good at efficiently ordering, salesmen are always trying to push deals today instead of tomorrow. If it makes good business sense small business owners can benefit from splurging with the credit cushion providing room for innovation. Any individual having to deal with sales reps from companies in which their products are sold have seen every pitch known to man. As a business owner with extra cushion in the form of credit you can now take your business to the next step, increase sales, and continue to dream big.  Once you sell that inventory and make the profit, you can repay the business line of credit, and continue to relax and take full advantage of your new found peace of mind.

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivable financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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How the Trump Tax Reform Will Impact Entrepreneurs

Every nation’s tax plan is crucial for the growth of its economy and citizens. As seasoned entrepreneurs, we know firsthand how government interference can affect operations and investments. Whether you like or hate the current political environment, there is no question that startups and small businesses make up the bulk of the economy (more than 90% of employers, according to the SBE Council). The House of Representatives and the United States Senate passed the final version of the Republican Tax Bill on December 20, 2017. The tax bill was based off of Trump’s administration plans as presented back in September 2017. This act will minimize income tax rates and double standard deductions while decreasing itemized deductions and changing business, child and elder care taxes.

So what impact will Trump Tax Reform have on Entrepreneurs?

To view all of AMP Advance’s Small Business Financing Options click HERE

Corporate Tax Cuts and Entrepreneurs

The final version of the act reduced corporate tax rates by 14 percent (from 35 percent to 21 percent.) Even though the former Senate bill proposed a corporate tax deduction of 35 percent to 20 percent, 21 remains an impressive reduction, and a boon to smaller businesses that were feeling the pinch.

Property Tax Deductions

Individuals and entrepreneurs in 2017 could deduct state and municipal property taxes from their federal returns, which was a boon to employers in high-tax areas like Silicone Valley. That won’t be true for the 2018 tax year, which is enough of a pinch to drive some businesses (over 9000) out of these high-tax states altogether. Others are holding on but expanding into business-friendly areas rather than investing further into coastal communities. For example, Software Giant Adobe and Toby Scammell’s data firm Womply have their headquarters in San Jose and San Francisco, respectively,  but are expanding in Lehi, Utah along the silicone slopes corridor.

Pass-Through Entities Tax Reduction

Prominent entrepreneurs are not the only ones who enjoy the tax refit. Small business owners who formed pass-through businesses (such as Limited liability companies “LLCs” and S corporations) for tax purposes will get a break too.

That’s because, under the previous act, returns from small businesses would “pass through” to the owners and get taxed at their individual rates.

At times, these rates would be as high as 39 percent. The new Republican Tax Bill allows small business proprietors to subtract 23 percent of their returns, which will immensely help them save on taxes.

Mixed Bag

Nonetheless, do not run off and become an LLC or S corporation just yet. In exchange for the new reduced rates, pass through entities will have to take on some expenses and responsibilities in payroll and bookkeeping needs. If this does not trouble you, go ahead and start your pass-through entity. Even though established firms will benefit more from the tax bill, this specific section of the Tax Cuts and Jobs Act is intended to help those whose profit margins are less than $157,500 Per annum for single taxpayers and $315,000 per annum for married-joint taxpayers.

Besides benefiting small business owners, the Tax Cuts and Jobs Act will encourage investments by permitting businesses to subtract costs of depreciable properties in 1 year vs. remunerating them over numerous years.

AMP Advance is a Miami based industry leading direct funding source out of Coconut Grove, Florida. We help those who are in need of small business financing by providing web based financing options & funding solutions. Our solutions assist small business owners find matching opportunities while assisting small business owners improve their overall financial situations. AMP Advance provides small business loans, business lines of credit, accounts receivables financing, equipment financing, unsecured business loans, and revenue based loans to millions of small business owners nationwide.

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